Cal. Code Regs. tit. 10 § 260.104

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

Section 260.104 - Unsolicited Orders

For purposes of subdivision (b) of section 25104 of the Code, an order or offer to buy a security is presumed not to be "unsolicited," if the broker-dealer knows or has reason to know that the order or offer to buy is in response to one or more of the following activities in which the selling broker-dealer has engaged within the last sixty (60) days:

(a) Publicly quoted a bid or asked price for the security which identifies the broker-dealer other than an interdealer quotation system intended for broker-dealer use only.

(b) Made a direct solicitation that customers purchase the security.

(c) Recommended the purchase of the security to customers, either directly or in a manner which would bring its recommendation to the attention of customers.

(d) Volunteered information about the issuer of the security either to a particular customer who then purchased the security or to customers generally.

(e) Executed a transaction to purchase or sell a security pursuant to its discretionary authority for a customer in a discretionary account.

A statement to the effect that the security is ineligible for purchase or sale in California or that investment in a security is not recommended for California purchasers included in a recommendation or other information circulated with respect to a security or an issuer does not negate the presumption created by this section.

This section does not create a presumption that an order or offer to buy is "unsolicited," if the broker-dealer has not engaged in the above activities within the previous sixty (60) days.

The term "customer," as used in this section, does not include persons to whom offers and sales may be made pursuant to the exemption set forth in subdivision (c) of section 25104 of the Code.

Cal. Code Regs. Tit. 10, § 260.104

1. Repealer and new section filed 3-1-91; operative 3-31-91 (Register 91, No. 13).

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25104, Corporations Code.

1. Repealer and new section filed 3-1-91; operative 3-31-91 (Register 91, No. 13).